Finance - Puts and Calls?
Finance - Puts and Calls?
Does anyone know how to add the following interrogate:
If I be to use like exercise price for respectively addition. And the stock price will increase by 5 from 45 to 60
Write CallOption Price 2.875//// 2.875 ///// 2.875 /// 2.875
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Profit Per Share
Buy Put(sell)Option Price 2.625 ///// 2.625 ///// 2.625 ///// 2.625
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Profit Per Share
Write PutOption Price 2.625 ///// 2.625 ///// 2.625 ///// 2.625
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Answers:
I am assuming that the put somebody through the mill requirements you to find the payoff and after the profit.
The payoff to the buyer of a ring up pick will be the greater of nought or the difference between the stock price and the strike price. The payoff to the dealer is merely the converse. So, for a stock price of 60 and a strike price of 55, the payoff is (60-55) which is $5. But the substitute cost 2.875 -- so the profit is 2.175.
That is the profit for the buyer. The writer of the Call have a loss of that amount. For a strike price of 45, the likelihood expires worthless. Here, the writer pockets the premium of 2.875 and the buyer loses that much.
Puts work the divergent. The payoff of a put is the maximum of nought or (StrikePrice-StockPrice)
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Does anyone know how to add the following interrogate:
If I be to use like exercise price for respectively addition. And the stock price will increase by 5 from 45 to 60
Write CallOption Price 2.875//// 2.875 ///// 2.875 /// 2.875
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Profit Per Share
Buy Put(sell)Option Price 2.625 ///// 2.625 ///// 2.625 ///// 2.625
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Profit Per Share
Write PutOption Price 2.625 ///// 2.625 ///// 2.625 ///// 2.625
Stock Price /////////// 45 /////// 50 //////// 55 //////// 60
Exercise Price ////// 55 /////// 55 //////// 55 /////// 55
Answers:
I am assuming that the put somebody through the mill requirements you to find the payoff and after the profit.
The payoff to the buyer of a ring up pick will be the greater of nought or the difference between the stock price and the strike price. The payoff to the dealer is merely the converse. So, for a stock price of 60 and a strike price of 55, the payoff is (60-55) which is $5. But the substitute cost 2.875 -- so the profit is 2.175.
That is the profit for the buyer. The writer of the Call have a loss of that amount. For a strike price of 45, the likelihood expires worthless. Here, the writer pockets the premium of 2.875 and the buyer loses that much.
Puts work the divergent. The payoff of a put is the maximum of nought or (StrikePrice-StockPrice)